Exhibit 12-B
CHRYSLER CORPORATION ENTERPRISE AS A WHOLE
COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
Nine Months Ended
September 30,
(unaudited)
-----------------------
1995 1994
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(in millions of dollars)
Net earnings from continuing operations $ 1,081 $ 2,545
Add back:
Taxes on income 709 1,654
Fixed charges 1,002 944
Amortization of previously capitalized interest 74 66
Deduct:
Capitalized interest 154 131
Undistributed earnings from less than
fifty-percent owned affiliates 13 11
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Earnings available for fixed charges $ 2,699 $ 5,067
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Fixed charges:
Interest expense $ 733 $ 697
Interest expense of unconsolidated subsidiaries 0 0
Capitalized interest 154 131
Credit line commitment fees 7 8
Interest portion of rent expense 108 108
Gross up of preferred stock dividends of
majority-owned subsidiaries (CFC) to a pre-tax basis 0 0
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Total fixed charges $ 1,002 $ 944
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Ratio of earnings to fixed charges 2.69 5.37
Preferred stock dividend requirements 31 99
Ratio of earnings to fixed charges and
preferred stock dividend requirements 2.61 4.86
Equity taken up in earnings of less than
fifty-percent owned affiliates $ 13 $ 11
Deduct:
Dividends paid by affiliates 0 0
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Undistributed earnings from less than
fifty-percent owned affiliates $ 13 $ 11
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For the purpose of computing the ratios of earnings to fixed charges and
preferred stock dividends, earnings are determined by adding back fixed
charges to consolidated earnings from continuing operations (including equity
in net earnings of unconsolidated subsidiaries) before taxes on income and
excluding undistributed earnings from less than fifty-percent owned
affiliates. Fixed charges consist of interest expense, credit line commitment
fees, interest portion of rental expense and the preferred stock dividend
requirements of its majority-owned subsidiaries increased to an amount
representing the pre-tax earnings that would be required to cover such
dividend requirements.